IRL, a social app that raised $200 million, has announced its shutdown after a CEO misconduct probe. The company will return capital to shareholders. According to a spokesperson, the investigation led to the decision to shut down the company. The spokesperson did not provide any further details on the nature of the misconduct. The company had previously suspended its CEO two months ago, and the board of directors had been conducting an investigation since then.
The app, which aimed to help people connect in real life, had gained popularity during the pandemic. However, a recent investigation by the board of directors found that 95% of the users were “automated or from bots.” This revelation has raised questions about the app’s user base and its claims of helping people connect in real life.
The shutdown of IRL is a significant blow to the company’s investors, which include SoftBank, Founders Fund, and Goodwater Capital. The company had raised $200 million in funding and was valued at $1 billion in its last funding round.
The shutdown of IRL highlights the importance of transparency and accountability in the tech industry. It also serves as a reminder that companies must prioritize the safety and well-being of their employees and users.